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Transcript

Why Ignoring First-Time Buyers is the Most Expensive Mistake You’ll Make · The Real Estate Agent Playbook

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  I can hear it now you as an agent
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  I don't wanna work with first time home buyers
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  it's too much work if I sell this bigger
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  more expensive property
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  it's the same amount of work and I get more money
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  I want you to stop right there
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  you're costing yourself six figures in future income
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  by ignoring first time home buyers
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  this is absolutely the truth
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  I live by it I still work with first time home buyers
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  after selling close to 500 homes
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  and this is something that you need to consider
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  before you utter I'm just going to
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  you know work with the luxury division
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  or I'm just gonna work with sellers or all the things
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  buyers are the key to your success
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  first time home buyers
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  are the key to your long term wealth in real estate
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  what's up guys
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  I'm Jeremy Kane with the real estate agent playbook
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  this is the single most important piece of my business
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  and how I continue to scale my business
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  using repeat and referral strategies organically
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  not paying for leads and still actively producing
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  as a top producing agent
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  at the top brokerage that closes
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  the most amount of transactions in the world
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  so let's talk about this right here
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  right now talk strategies like this all the time
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  this one's gonna be a little more emotional
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  because I care so deeply about first time home buyers
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  and helping young people
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  poor old people get into their home
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  and start their real estate wealth building journey
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  so let's get into it first and foremost
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  why don't you drop a comment
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  about what your biggest struggle is
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  working with first time home buyers
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  or what it's been I'd love to converse with you
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  I'd love to help you through that problem
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  because it's only a couple problems
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  once you do it one time it's like riding a bike
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  why why do we do this right
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  helping a first time home buyer is literally
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  future gold
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  you're padding your bank account for many years to come
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  if that first time home buyer has a great experience
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  likely they work with a bunch of people
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  who will be first time home buyers
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  in the next six to 12 months right
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  so
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  you need to make that experience as great as possible
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  even if it's annoying
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  that you can only show houses at rush hour
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  or whatever do it right because the
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  the referrals that come from first time home buyers
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  are key right
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  a lot of people enter the world eyes wide open
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  sometimes they have a friend that's a real estate agent
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  not so much anymore I used to know every
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  you know everybody used to know seven realtors
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  now they know about three to four
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  uh so it's a lot easier to stand out
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  but if you provide that amazing opportunity
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  and they're raving about their experience
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  then that person's like oh well
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  you know this person works in real estate half time
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  I need to call Jeremy
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  I need to have that experience because I want it
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  I recently had a group of first time home buyers
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  we're closing in the kitchen of their house
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  which was kind of cool
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  and something they said to me was
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  this was so easy right
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  every fear that we had we literally did not buy a house
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  because we were scared of the process
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  and we had heard the nightmares
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  this was easy you and your team handled everything
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  the lending team handled what they had to do
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  the inspection was easy we negotiated
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  we got what we wanted we got a good deal
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  and now we're closing
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  and we started talking 45 days ago right
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  it was so easy
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  this is what is huge because then their next was like
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  we're gonna tell everybody
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  we know exactly how easy it was
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  because you did such a great job for us boom
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  instant referrals
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  that'll be three to four referrals a year and as we go
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  we repeat that step and then by the time we've sell
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  you know
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  five to 10 referrals of closed from that client
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  they're gonna be ready to move up
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  they're gonna call me I'm gonna sell their house
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  they're gonna become a buyer as well
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  so if you think about this as it goes
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  how does it look right
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  and as we've seen a market shift from you know
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  three to five years ago
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  it was buyers had to get out there
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  we had to show a ton of properties
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  submit multiple offers now it's different right
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  as people shifted away from the buyers
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  because it was too much work
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  nothing is too much work for how much we get paid
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  I'll tell you that right now
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  but if if we shift away from that
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  and we're looking at it like okay
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  now it's a little bit different now Inventory's rising
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  now people are begging for buyers back right
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  and we we kind of abandoned that pipeline
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  and we needed to keep it going
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  you keep that going
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  and those first time home buyers are always coming
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  right right
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  now move up
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  sellers are not a great market
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  because they have low interest rates
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  and all the things
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  but these first time home buyers are still coming
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  they're still coming out of the woodwork
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  they're still believing in you know
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  homeownership they may not even know that
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  the interest rates used to be 3%
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  now they're 7 but this is a huge piece of it right
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  so in a tight tight market you know
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  buyers especially with the higher interest rates
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  don't don't need the perfect home
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  they need the most strategic home
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  so if we're talking to buyers
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  how are we looking at this
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  we're focusing on affordability
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  a key to affordability
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  is not just the mortgage payment
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  but it's what are the systems
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  what's the furnace look like
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  what's the roof look like
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  what's the sewer line look like
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  what are these high dollar
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  usually five figure improvements going to
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  you know when are they coming
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  because if it's first time home buyer
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  and they're maxed out on their
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  their mortgage payment we need to make sure
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  that some of those other things are good to go
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  if you have brand new furnace
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  brand new roof warranties on everything
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  all the things then yes
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  maxing out that budget is is important
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  still have an emergency fund
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  new things break too
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  but that's where the affordability really comes in
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  the affordability doesn't come from the
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  you know fancy gray tile
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  or the color of the year being all over the walls
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  or anything like that painting's cheap if you
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  you know have a paintbrush
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  so that's huge and
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  and understand what your client skill sets are
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  and understand that so now we need to move to okay
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  home ownership is is important for these people
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  let's talk about these objections that we're seeing
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  rates are too high well
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  what's that mean what's a too high of a rate
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  because they're gonna say well
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  you know seven or eight well
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  we're not at seven or eight
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  even currently in our market however
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  I don't think I've had anyone pay over six and a half
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  or six nine nine or whatever that looks like right
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  and so you can understand
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  you can talk about the raising inventory
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  the amount of seller concessions that are being
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  you know
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  secured by buyers who are looking to buy down the rate
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  explain what that looks like we should wait
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  what does waiting really solve
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  the market still gonna be there right
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  the cost cost of delay is going to you know
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  come into play yes
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  rates are better here come all the buyers yes
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  rates are higher
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  then inventory's rising less buyers in the market
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  so you have more opportunity to negotiate
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  there's no reason if you're ready
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  to sit around and throw 100% interest at your rental
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  pay someone else's mortgage
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  when you could be paying your own
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  if the stars align
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  and you can find that affordability factor
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  there's nothing that we like well
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  if there's nothing you like
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  guess what is there something you can move into
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  and make it what you like
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  over time can you make those improvements
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  because if there's nothing that you like
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  typically there's room for you know
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  sweat equity to be built in that home
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  and so as we go
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  and we're talking about this as an investment yes
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  this is not your forever home
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  it's your starter home
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  and so if there's improvements to be made
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  that maybe you have skill sets
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  or a family member that has those skill sets
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  it can do the labor for cheaper
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  let's talk about that
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  if there's not a family member or somebody that
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  you know that can do the labor
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  then let's talk about budgeting for it
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  let's make a plan because if you don't love it now
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  you can make it you know
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  work if it's livable and affordable
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  and you can make it so that you do love it
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  once you do love it and it's time to move on
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  will it look better for the rest of the market
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  likely
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  unless you like hot pink walls and things like that
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  but we'll talk about that as we go
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  in our annual reviews that we do
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  if you're interested
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  in learning more about my annual review process
• 7:53
  put annual review below
• 7:54
  and I'd be happy to help you understand
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  exactly what I do to retain these buyers
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  for lifelong clients as we go
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  so then here we are we're
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  we got them off the fence
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  we're ready to go we've handled the objections
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  and now it's about winning offers right
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  the winning offer isn't always the highest price
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  although right now in our market with sellers
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  you know with concessions and all the things
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  high price does help a ton
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  um but let's talk about this
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  let's understand
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  let's educate what it looks like as an inspection waver
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  right I always have an inspection objection
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  uh those things that
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  you know
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  are agreed to on the resolution that maybe fell off
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  the objection let's talk about that
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  let's remind them that yes
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  that you know
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  plug needs to be grounded or the GFCI's are
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  you know need to be installed
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  let's remind our clients of those things that were left
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  behind so that they know
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  give them a honey do list a couple weeks in after
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  and say hey
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  you know I hope your house is doing great
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  I wanted to remind you of these inspection items
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  that didn't quite get to the list
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  or on the objection or the resolution
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  but here they are just so you have them um
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  check out YouTube call my guys if you need you know
• 9:00
  at this number if you need anything
• 9:02
  so another way to hand out referrals and
• 9:04
  and make that something that's pretty special
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  and powerful and a touch point
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  that's really helpful
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  because once they've moved in and they're all in there
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  sometimes they forget
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  sometimes those gutters just don't get cleaned out
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  sometimes that you know
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  grading doesn't change that the inspector noted
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  there's like throw cut little dirt here and whatever
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  so to build that to do list is an
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  absolutely powerful piece
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  of retaining the relationship with these buyers
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  after closing
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  and then as we go we're going to write some offers
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  we're going to educate our buyers our sellers
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  uh the listing agents as we go
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  we're going to put this stuff out there
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  and we're going to continue to win
• 9:40
  through communication
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  we're going to build relationships
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  with that other agent because ultimately
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  if we're not winning offers
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  it's our fault typically right
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  if we're you know throwing low ball offers and all that
• 9:51
  but if we're not winning offers
• 9:52
  I've won offers you know
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  below list price when they had at list price
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  I've won not the highest valued offer
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  because I communicated I told the story of the contract
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  we got to be careful with equal housing and all of that
• 10:06
  but telling the story of your client is
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  you know pretty basic
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  you know hey
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  it's a young family they're looking to grow here
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  they're looking to stay here a long time
• 10:14
  hey it's a young family getting their first house
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  they want to turn this into
• 10:17
  you know an investment launchpad
• 10:19
  all those things tell the truth
• 10:20
  tell the story right
• 10:22
  pay attention as an agent when you're touring the home
• 10:25
  what this you know
• 10:26
  what this home has seen right
• 10:28
  is there little kids beds
• 10:29
  is there things like that that you can talk about
• 10:32
  is there you know
• 10:33
  congruencies with with your client
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  to them and their story and where they're at
• 10:38
  not you know
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  anything other than you know
• 10:41
  their story and their story
• 10:43
  and as you can grow this
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  you can build that relationship
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  build that rapport
• 10:48
  so that sometimes you can win an offer
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  when maybe you're not the highest
• 10:52
  but maybe you're doing something with property
• 10:54
  as a means of living in it
• 10:55
  as a primary residence that the
• 10:57
  the cash offer isn't right
• 10:59
  and so you can utilize these things to
• 11:02
  you know
• 11:02
  give your clients an advantage to win the offer
• 11:05
  and then first time home buyers aren't so bad to work
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  with because you're getting them under contract right
• 11:10
  and then the excitement comes
• 11:11
  they're appreciative
• 11:12
  more appreciative than anybody else that you work with
• 11:15
  right they're happy they're excited they're nervous
• 11:18
  but they know that they have you in their corner
• 11:20
  and that's where you know
• 11:22
  the heart to serve really gets fulfilled
• 11:25
  in this industry is when you hand those keys
• 11:27
  to that first time home buyer
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  as many of you know
• 11:29
  so helping entry buyers can lead to a legacy
• 11:34
  it can lead to better business for you
• 11:36
  it can lead to more referrals as you go again
• 11:39
  they're surrounded by a bunch of people
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  typically as a startup you know
• 11:43
  starting their careers
• 11:45
  a bunch of people that need your services
• 11:47
  so those referrals come but then as you go right
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  if they have an amazing experience
• 11:52
  you help them out you make them you know
• 11:54
  avoid some landmines get through some problems
• 11:56
  that might have occurred in the house
• 11:58
  you know if you
• 11:59
  if they move into a house and there's a hailstorm
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  six months later
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  you wanna explain to them what's going on
• 12:04
  and why
• 12:04
  it sounds like the hail's still knocking on their door
• 12:07
  because there's 40 roofers in their
• 12:09
  in their you know
• 12:11
  neighborhood trying to get their you know
• 12:14
  deductible that day right
• 12:16
  talk to them about that be there
• 12:17
  be that resource so that when things happen
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  they don't know because then when it's time to sell
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  you're gonna be their resource again
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  you're gonna be their first time home seller agent
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  which I
• 12:27
  the next video that I'm gonna put out next week on
• 12:29
  this is exactly about helping first time home sellers
• 12:32
  but this is it if you're interested in learning more
• 12:36
  my client journey is available to free
• 12:38
  for everyone who partners with me
• 12:40
  I also do consultations and coaching
• 12:42
  so if you're interested in that book a call below
• 12:44
  Realtor Game Plan call
• 12:46
  or if you're interested in joining
• 12:47
  the record breaking group
• 12:48
  the Wolf Pack VIP re Agent
• 12:50
  Wolf Pack we'll see you next time
• 12:52
  and I can't wait to chat with you
• 12:53
  and build this legacy of your business
• 12:56
  right here right now
• 12:57
  go get a win today bye bye